CIT Group announced that CIT Capital Equipment Finance served as Lead Agent in a $76 million senior secured credit facility to Construction Partners, Inc., a leading infrastructure and road construction company in the Southern United States. Construction Partners is a portfolio company of SunTx Capital Partners, a Dallas-based private equity firm. The facility will be used to refinance equipment and real estate-related debt and for future growth. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.
“We value CIT’s knowledge of capital equipment finance and its ability to structure a flexible and competitive transaction was apparent throughout the financing process,” said Charles Owens, President and CEO of Construction Partners. “The continued high demand for public road construction offers us a great opportunity to leverage this financing to drive future growth.”
Ned Fleming, Managing Partner of SunTx Capital Partners, said, “In 2001, we partnered with an experienced management team to establish Construction Partners, which embarked on a consolidation strategy in the road construction industry. The company has grown through a number of strategic acquisitions and greenfield expansions since then. In CIT, we have found an outstanding financial partner to support Construction Partners as it executes its expansion strategy.”
“We are pleased to provide this financing for Construction Partners,” said Burt Feinberg, President of CIT Corporate Finance, Commercial and Industrial. “As a regionally-focused leader in the road construction and hot-mix asphalt industry, Construction Partners has a strong management team with a well-established record of success and an engaged private equity partner in SunTx. We look forward to growing these relationships.”
Jeff Kilrea, Co-Head and Managing Director of CIT Sponsor Finance, added, “We are pleased to partner with SunTx and their portfolio company Construction Partners to support future growth of their business.”